Are startups eligible?

Yes. In Round 2 of the MN PROMISE Act, startups are eligible to apply. The program now only requires your 2024 tax return. If your startup has filed a 2024 return and meets all other eligibility criteria, you can apply. 

If you have not yet filed for that tax year, you must have submitted a tax extension for your most recent tax year (e.g., IRS Form 7004). You will need to provide either a valid tax return or proof of the tax extension as part of your application. 

If you are still getting your business started and do not meet these criteria, we recommend checking out other small business support programs through organizations like NDC or DEED: 

NDC | Neighborhood Development Center (ndc-mn.org) 

Starting a Business / Minnesota Department of Employment and Economic Development (mn.gov) 

Am I in an eligible area?

Click here to view the eligibility map. The map highlights different eligible areas. Please follow the instructions on the page to check if your business address is in an eligible area. 

You will be required to provide documentation to prove your physical business address. The document must be uploaded to the grant portal in PDF form. Only the four types of documentation listed below will be accepted.   

• Most recent year of filed tax returns  

• Utility bill (phone, TV internet, electric, gas, water, insurance) dated within 45 days of correct submission of your application 

• Current business lease or mortgage (signed, dated)  

• Business or professional (not personal) licensure 

• Bank statement dated within 30 days of correct submission of your application 

If a commercial business, only the following documents will be accepted: 

• Most recent year of filed tax returns 

• Current business lease or mortgage (signed, dated) 

Please note that P.O. Boxes and virtual mail service are not accepted as eligible addresses. 

Are there exceptions to the eligible areas?

There are no exceptions to eligible areas for the PROMISE Act. The eligible areas on the website are based on the language in the law. If you are not eligible, we encourage you to advocate for yourself with your elected representatives. We have provided a script and instructions on how to do this here. 

What are the eligibility criteria?

Click here to view the full eligibility criteria 

Does your business have to suffer from a loss in revenue in order to be eligible?

No, your business does not have to suffer a loss in revenue to be eligible. However, if your business experiences a loss in revenue, your application will be given preference per the law. Click here to visit our Grant Preference page to learn more. 

What if I’m not currently located in one of the eligible communities, but am looking to open a store in one?

You must have a current business located in the community, as required by the legislation. If you plan to apply for the PROMISE Act grant and will have moved your business to an eligible location by then, you should have your lease and updated business documents showing the new address ready at the time of application. 

Is there a minimum income/revenue requirement?

No, there is no minimum income/revenue requirement. However, the latest year of submitted tax returns will be used to determine the award amount. Click here to view how your award amount is calculated.

Does the revenue requirement include grants previously received?

The gross revenue reported must match what is in the tax filings submitted. Previous grants need to follow the IRS reporting rules associated with that grant program.

Are non-profits eligible to apply for the MN PROMISE Act grant?

Yes, non-profits are eligible to apply for the MN PROMISE Act grant.  

Along with meeting all other eligibility criteria, a nonprofit corporation must also: 

• Meet one of the listed criteria: 

• Definition A: A nonprofit organization that earns 30% or more of their revenue on an ongoing basis through a non-tax-deductible sales or dues in a fee-for-service model similar to for-profit businesses. 

• Definition B: A nonprofit organization that earns 10% or more of their revenue on an ongoing basis through a non-tax-deductible sales or dues in a fee-for-service model similar to for-profit businesses AND demonstrate they maintain ongoing customer-facing operations at a permanent physical location at which some of those sales take place. 

• Be able to upload your IRS Form 990 or 990-EZ (Note: Postcard is not accepted). 

I’m a home-based or an online business. Am I eligible?

Yes, home-based or online businesses are eligible to apply. However, you must still meet all other eligibility requirements, including having claimed and been allowed a home office deduction by the IRS in your most recently completed tax year. Click here to view the full eligibility criteria

My business is a mobile food truck, am I eligible?

Yes, as long as your primary business address is in the eligible program geography. Click here to view the eligibility map.

How can I provide feedback on the geographic boundaries?

You, as a constituent, can advocate for yourself and your business by contacting your State Representative and State Senator to let them know you are not eligible for a MN PROMISE Act Grant. They need to hear from YOU as their constituent. Check out our instructions and steps for self-advocacy by clicking here. 

What if I have multiple businesses with numerous locations in the eligible areas? Can I apply for each of the businesses?

No, you can only apply for one grant under one business. Here's what that means for different situations: 

🏢 If you own multiple businesses: 

• You must choose only one business to apply under. 

• Even if more than one of your businesses operates in eligible areas, only one can be submitted. 

• You will be required to disclose all owners who hold 20% or more of the business you apply for. 

• If you own 20% or more of multiple businesses, only one of those businesses is eligible to apply. 

📍 If your business has multiple locations: 

• You must only apply for one business location, even if you operate in more than one eligible area. 

• Do not submit separate applications for each location. 

👥 If your business has multiple owners: 

• Only one application per business can be submitted. 

• Multiple owners cannot each apply separately for the same business. 

• Decide which owner will complete and submit the application. 

⚠️ Important: 

• Submitting multiple applications may delay processing or result in denial. 

• All applications are reviewed for duplicate ownership and duplicate business entities. 

How long do I need to be in the geographic area?

Your business location must meet eligibility as of the date you apply for the grant. 

• If you recently moved, make sure your business documentation is updated with the new address. 

• Moving from one eligible area to another may affect your application, as the funding amounts or availability differ between areas. 

• Your address must be clearly listed on the required documents you submit (like your tax return, lease, or utility bill). 

To avoid issues, confirm that your business address is correct and eligible before applying.

Are downtown Minneapolis or Brooklyn Center considered eligible areas?

Some areas of Brooklyn Center are considered eligible. However, downtown Minneapolis and any other locations outside the specified program geography are not eligible. Your business must be located in an eligible area to apply. 

Click here to view the eligible areas as defined by the law.

You can also click here to view the eligibility map. The map highlights eligible areas and includes instructions on how to check if your business address is eligible. 

Are P.O. Boxes and virtual mail services considered eligible addresses?

To be considered as “located in” an eligible community, the business must have a physical location within that community. If the business does not have a fixed location outside the owner’s home, then the business “location” would be the primary owner’s home address.  

Under Minnesota law, a P.O. Box and virtual mail service does not count as a physical location for a business. Click here for more information. 

In Minnesota, if a business must be registered with the Secretary of State (such as an LLC or S-Corp), the law requires a physical address within the state as the registered office. A PO Box and virtual mail service alone is not acceptable as a registered office address. 

Note: Not every business is required to register. For example, sole proprietors using their legal name do not need to register. However, for the MN PROMISE Act grant program, “location” refers to a real, physical place, not a P.O. Box or virtual mail service. 

Additionally, for fraud prevention purposes, P.O. Boxes and virtual mail services are not accepted.